Sterling hits 5-mth high vs dollar on bank results

* Sterling up 0.1 percent at $1.5502 GBP=D4

* Resistance near 200-day moving average of $1.5554

LONDON, July 27 (Reuters) - Sterling touched a five-month high against a broadly softer dollar on Tuesday, with investors encouraged to buy into riskier assets by better-than-expected bank results.

UBS (UBSN.VX) outdid rivals and beat profit forecasts thanks to strong investment banking revenues and shrinking client outflows, while Deutsche Bank (DBKGn.DE) held ground after a drop in loan loss provisions. [ID:nLDE66Q0FS]

Even a loss at British oil major BP (BP.L), which took a hefty charge related to the Gulf of Mexico spill, was brushed aside as the worst for the company was seen over. [ID:nWLA9308]

"We saw a bit of a sell-off in the dollar as the bank results boosted risk appetite," said Christian Lawrence, currency strategist at RBC Capital Markets.

Sterling rose to a five-month high of $1.5530 in early European trade, but traders were quick to take profits in thin trade. By 0729 GMT, it was up 0.1 percent at $1.5502 GBP=D4.

The near-term target was $1.5554, the 200-day moving average, which has not been hit since late February.

Stop-loss buy orders were seen above $1.5530, while option barriers were cited near $1.5550, traders said.

Support was at the base of a two-month up-channel at $1.5213, and an upside bias would remain while this held, technical analysts at Commerzbank said.

There was also talk of dollar-selling demand due to position adjustments ahead of the month-end by funds and model funds, which would keep pressure on the greenback.

The euro was little changed on the day at 83.86 pence EURGBP=D4.

Traders waited for Deutsche Bank to reveal its exposure to euro zone sovereign debt, while results of a Spanish Treasury bill auction were also in focus.

The Confederation of British Industry's July retail survey is expected to show the sales balance improving to zero from minus 5.

(Reporting by Tamawa Desai)